Gelonghui, March 25 | According to Everbright Securities Research Report, Sinopec (600028.SH) achieved revenue of 3212.2 billion yuan in 23, a year-on-year decrease of 3.19%, and net profit to mother of 60.5 billion yuan, a year-on-year decrease of 9.87%. International oil prices fluctuated throughout the year, domestic demand for refined oil products and natural gas increased, and demand for chemical products recovered. Although profits in the upstream business fell 15% due to falling oil prices, the refining business benefited from a recovery in demand and achieved a 71% increase in profit, and the sales business maintained a high level of profitability with integrated advantages. Operating cash flow was strong in 2023, up 38.9% year over year. The company focuses on reducing costs and increasing efficiency, increasing exploration efforts, and the oil and gas reserve replacement rate is 131%. The volume and price of the refining sector rose sharply, and crude oil processing volume reached a record high; the sales business seized the opportunity of a recovery in demand, and the sales volume of refined oil products set a record. The chemical sector faces pressure on production capacity and reduces costs through optimization and adjustment. A high percentage of cash dividends were distributed in 2023, and repurchase and fixed increase plans were actively promoted, showing confidence in the company's future development. Continuing to be optimistic about its core competitiveness as a domestic petrochemical leader. In the future, as the company's new production capacity is gradually put into operation and the layout of the new energy sector is implemented, the company's performance is expected to increase, and long-term growth prospects are broad, so it maintains the “buy” ratings of A-shares and H-shares.